Legislation impacting charitable giving

The COVID-19 global pandemic has proven to be a marathon, not a sprint. Nonprofit organizations will be relying on the generosity of donors for the foreseeable future to stay afloat and serve the people who need their programs. Supporting the causes you care about is more important now than ever before.

Included below is information about federal legislation that impacts charitable giving and strategies to consider in conjunction with those changes. As always, check with your financial or other professional advisor to determine what type giving is most appropriate for you. The NCCF team is ready to work with you and your advisors on an individual plan for expanding the impact of your philanthropy.

CARES Act

The 2020 CARES Act and the Taxpayer Certainty and Disaster Tax Relief Act provided charitable giving incentives for both itemizing and non-itemizing taxpayers for contributions made to qualifying public charities for tax year 2021. As you plan your 2021 charitable giving, consider how these provisions may impact or inspire your philanthropy, and review strategies you may consider.

SECURE Act

Advisors and donors have long utilized retirement funds as an effective asset for charitable giving, particularly for planned giving. While family members must pay income tax when withdrawing retirement funds, charities do not; giving retirement funds to a charitable organization results in an impactful gift and allows the donor to utilize other tax-wise assets for family.  The 2019 Setting Every Community Up for Retirement Enhancement (SECURE Act) made several changes that could make charitable planning with retirement assets even more appealing.

Tax Cuts and Jobs Act of 2017

The Tax Cuts and Jobs Act of 2017 implemented a standard deduction that changed the way most taxpayers itemize charitable contributions. Generally, a taxpayer will itemize when the combined total of anticipated deductions – including charitable gifts – add up to more than the standard deduction (single filer is $12,400; married filing jointly is $24,800). If anticipated deductions are less than the standard deduction, you’ll likely choose to take the standard deduction and will not itemize.

Individuals who want to maximize their charitable deductions under the new tax laws can benefit by “bundling” their charitable gifts – i.e., make two or more years’ worth of charitable contributions in a single year. This strategy helps push taxpayers over the itemizing threshold, where they can reap the benefit of deducting the full value of their donations.

Bundling your charitable gifts is an ideal strategy to establish or add to a donor advised fund at NCCF. A DAF is a giving vehicle that allows you to make a gift and receive income tax deductibility, while having the ability to advise annual grants to support your favorite nonprofit organizations over time. 

NCCF does not provide tax or legal advice. The information contained herein is for educational purposes and is not intended to be a substitute for individualized tax, legal or investment advice.

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The NCCF team is ready to work with you and your advisors on an individual plan for expanding the impact of your philanthropy.<\/p>\r\n<h2>CARES Act<\/h2>\r\n<p>The 2020 CARES Act and the Taxpayer Certainty and Disaster Tax Relief Act provided charitable giving incentives for both itemizing and non-itemizing taxpayers for contributions made to qualifying public charities for tax year 2021. As you plan your 2021 charitable giving, consider how these provisions may impact or inspire your philanthropy, and review strategies you may consider.<\/p>","excerpt":"","media":0,"custom":{"social_sharing":{"share_image":""},"masthead":{"title":"","counties":"","affiliate_logo":"","sub_text":"","background_image":"","caption":""},"post_image":{"image":""},"latest_blog":{"post":""},"blocks":{"blocks":[{"fieldset":"8d2e0895df77444baf2690fb407972d5","fieldset_slug":"_button_block","button1_text":"Read More","button1_link":"\/news\/effect-of-coronavirus-legislation-on-charitable-giving","button2_text":"","button2_link":"","button3_text":"","button3_link":""},{"fieldset":"fd39717673c942dfb102a174d17a8b99","fieldset_slug":"_wysiwyg","text":"<h2>SECURE Act<\/h2>\r\n<p>Advisors and donors have long utilized retirement funds as an effective asset for charitable giving, particularly for&nbsp;planned giving. While family members must pay income tax when withdrawing retirement funds, charities do not; giving retirement funds to a charitable organization results in an impactful gift and allows the donor to utilize other tax-wise assets for family.&nbsp; The 2019 Setting Every Community Up for Retirement Enhancement (SECURE Act) made several changes that could make charitable planning with retirement assets even more appealing.<\/p>","image":"","alignment":""},{"fieldset":"8d2e0895df77444baf2690fb407972d5","fieldset_slug":"_button_block","button1_text":"Read More","button1_link":"\/news\/secure-act","button2_text":"","button2_link":"","button3_text":"","button3_link":""},{"fieldset":"fd39717673c942dfb102a174d17a8b99","fieldset_slug":"_wysiwyg","text":"<h2>Tax Cuts and Jobs Act of 2017<\/h2>\r\n<p>The Tax Cuts and Jobs Act of 2017 implemented a standard deduction that changed the way most taxpayers itemize charitable contributions. 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